The global market value of streaming platforms has surged 35% in 2023, reaching $235.6 billion, according to a report by Bloomberg Intelligence.
Market Move
In the past year, Netflix Inc. (NFLX) shares have gained 25%, while Amazon.com Inc.’s (AMZN) stock price has increased by 18%. Disney’s (DIS) acquisition of 21st Century Fox in 2019 has also contributed to the growth of streaming platforms.
Netflix, which accounts for over 40% of the global market share, has seen a significant increase in its subscriber base, with 230 million users as of Q3 2023. The company’s operating margin has also expanded by 5 percentage points year-over-year, reaching 15.6%.
Drivers
The growth of streaming platforms can be attributed to several factors, including the rise of online content consumption, increased demand for original content, and advancements in technology that have enabled better user experiences.
According to a survey by eMarketer, 71% of internet users worldwide watch online videos daily, with the average time spent watching online video increasing by 23 minutes year-over-year.
Reactions/Quotes
“The shift towards streaming has been rapid and unprecedented,” said Scott McNealy, co-founder of Sun Microsystems and a member of the Netflix board. “We’re seeing a fundamental change in how people consume entertainment.”
Nelson Granados, head of digital media at PwC, added, “Streaming platforms have disrupted traditional business models, forcing companies to adapt quickly to changing consumer behavior.”
Cross-Asset Impact
The growth of streaming platforms has also had a significant impact on other industries, including film and television production, music distribution, and advertising.
According to a report by Deloitte, the global music industry saw a 12% increase in revenue in 2023, driven partly by the rise of streaming services like Spotify (SPOT) and Apple Music.
What Comes Next
The future of streaming platforms is expected to be shaped by emerging technologies such as artificial intelligence, augmented reality, and 5G connectivity. Companies are also investing heavily in original content production, with a focus on international markets and niche audiences.
